Sasken Technologies Ltd (SASKEN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

InfoBeans Tech.

Silver Touch

Orient Tech.

GHV Infra

Ceinsys Tech

BLS E-Services

Sasken Technol.

Magellanic Cloud

Protean eGov

Saksoft

Accelya Solution

Why is Sasken Technologies Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -28.92% of over the last 5 years

With ROE of 4.9, it has a Very Expensive valuation with a 2.4 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -32.59%, its profits have fallen by -21.5%

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Below par performance in long term as well as near term

Along with generating -32.59% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Sasken Technol. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sasken Technol.

-32.59%

-0.79

41.47%

Sensex

7.97%

0.69

11.53%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.68%

EBIT Growth (5y)

-28.92%

EBIT to Interest (avg)

56.75

Debt to EBITDA (avg)

0.43

Net Debt to Equity (avg)

-0.10

Sales to Capital Employed (avg)

0.68

Tax Ratio

19.40%

Dividend Payout Ratio

75.18%

Pledged Shares

Institutional Holding

19.58%

ROCE (avg)

12.35%

ROE (avg)

12.64%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.40

EV to EBIT

61.45

EV to EBITDA

29.61

EV to Capital Employed

2.56

EV to Sales

1.99

PEG Ratio

Dividend Yield

1.96%

ROCE (Latest)

2.37%

ROE (Latest)

4.90%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

25What is working for the Company

PBDIT(Q)

Highest at Rs 25.63 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 10.25%

PBT LESS OI(Q)

Highest at Rs 14.18 cr.

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 61.82 cr

NET SALES(Q)

At Rs 250.13 cr has Grown at 21.8% (vs previous 4Q average

PAT(Q)

Highest at Rs 14.12 cr.

-5What is not working for the Company

ROCE(HY)

Lowest at 6.47%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.45 times

EPS(Q)

Lowest at Rs 5.12

Loading Valuation Snapshot...

Here's what is working for Sasken Technol.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 14.18 cr has Grown at 318.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 3.39 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 25.63 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 10.25% and Grown

each quarter in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 14.18 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 14.12 cr has Grown at 43.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 9.82 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 250.13 cr has Grown at 21.8% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 205.39 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 14.12 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 61.82 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Sasken Technol.

Debtors Turnover Ratio- Half Yearly

Lowest at 4.45 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Earnings per Share (EPS) - Quarterly

Lowest at Rs 5.12

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)